- Enterprise40
- Oct 7
- 3 min read
London UK – 7 October 2025 – Europe’s beverage market is undergoing a structural reset as a new generation of consumers turns away from alcohol in favour of innovative, healthier alternatives. New analysis announced today by Circana at the Beverage Forum Europe 2025, reveals that 71% of consumers are buying, stocking, or consuming less alcohol, and almost one in four 25–35-year-olds have stopped buying alcohol altogether.
Sales of soft drinks and functional beverages move ahead of alcohol
The total European beverages category has reached a value of €166 billion, accounting for nearly a quarter (23%) of all edible CPG demand across Circana’s largest European markets (EU6 – France, Germany, Italy, Netherlands, Spain, UK).
While overall sales value grew +2.1% and volume rose +0.6% year-on-year, the real story is divergence: alcoholic beverages slipped -1.8% in value sales to €68 billion, while non-alcoholic beverages grew +5.1% to €97 billion. With soft drinks, functional blends, and no/low alcohol choices now making up almost 60% of category sales, the future of growth is firmly in the hands of non-alcoholic innovation.
Consumers cite being ‘more refreshing’ (55%), ‘healthier with plant-based ingredients’ and ‘tasting better’ (27%), ‘better for me’ (22%) and ‘fits my lifestyle (21%) as the main reasons for switching from alcohol to alternatives such as functional drinks, protein-based beverages, kombucha, and mood-enhancing no/low-alcohol options.
Ananda Roy, SVP Thought Leadership at Circana, said: “The message to brands is clear; ‘more of the same’ is no longer a growth strategy. Growth will not come from short-term disruption but from strategic reinvention. As new consumers, needs, and occasions reshape the market, category leadership will belong to those who strengthen their capabilities, innovating with purpose, embedding sustainability, and engaging shoppers in credible and lasting ways.”
Key takeaways
New consumers, new occasions – Changing lifestyles and rituals are redefining the meaning of beverages, demanding that brands adapt portfolios to evolving consumption patterns.
Growth in adjacencies – Categories outside of traditional alcohol are accelerating and will increasingly impact the wine and spirits sector by 2035, highlighting the need for cross-category innovation.
Sustainability as a growth driver – No longer just a compliance issue, sustainability is now a commercial opportunity, but one constrained by availability and affordability. Brands that can deliver on both will gain a competitive edge.
Innovation with purpose – True reinvention in product design, pricing, distribution, and consumer engagement, not short-term promotions, is what will make wine and spirits relevant and desirable again.
Moderation reshaping demand – The rise of low/no alcohol reflects a structural shift toward moderation and under-consumption. While this will change category demand by 2045, brand heritage and craftsmanship remain powerful assets.
Beverage Forum expands to Europe with Circana providing market intelligence and thought leadership
Circana has also been confirmed as the official Data & Insights Partner to the Beverage Forum’s first-ever European edition, taking place in London on 7 October 2025. As part of this partnership, Ananda Roy will deliver the keynote address - ‘European Beverages, New horizons in a changing world’ sharing Circana’s latest findings on consumer behaviour, category reinvention, and future growth pathways.
Danny Stepper, CEO of LA Libations, commented: “The Beverage Forum has always been about bringing the brightest minds in beverages together to share ideas and spark growth. With Circana as our official Data & Insights Partner, attendees will benefit from world-class intelligence on consumer behaviour and market dynamics; an invaluable asset as we shape the future of the industry.”
The full findings of Circana’s analysis will be revealed in a keynote presentation by Ananda Roy at the European Beverage Forum in London on 7 October.
Editors’ notes
1 and 3. Source: Circana, ‘Volume Vortex’ Shopper Survey, February 2024: n=2000
2. Source: Circana, POS Retail Data, 52 WE August 2025
Media contact
Marcus Edgar
Eureka Communications
Tel: +44 (0)7810 876 077
